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Gray has had discussions with Craig Shakespeare and the City management this summer about his playing time and has been the subject of bids from Bournemouth, but the club are extremely keen to keep hold of the England Under-21 international, who they signed for £3.5m from Birmingham in January 2016.

City have been looking to add an attacking midfielder or wide player this summer, to complement Riyad Mahrez, Marc Albrighton and Gray, but missed out Gylfi Sigurdsson and will likely not return for Townsend if Palace’s valuation remains the same.